LONDON, Jan. 23, 2013 /PRNewswire/ -- Legislation and standardisation are set to catalyse the advanced metering infrastructure (AMI) market in Europe. Market participants are working towards standardisation and fulfilling regulatory requirements for the development of smart meters and AMI to begin mass rollouts. New analysis from Frost & Sullivan ( http://www.energy.frost.com), European Advanced Metering Infrastructure (AMI) Market, finds that the AMI revenue in Europe is expected to grow from $1.13 billion in 2011 to $3.72 billion in 2016 at a compound annual growth rate (CAGR) of 26.9 per cent. The research covers smart meters, installation, communication systems and network, meter data management (MDM) and customer and programme data management. "Emerging smart grid technologies, which support enhanced energy management, will boost the installation of AMI in Europe," noted Frost & Sullivan Energy & Power Supplies Research Analyst Neha Vikash. "The market is expected to witness higher growth not only in smart meters and the installation segments, but also in communications networks, MDM, customer and programme data management segments as well." Most companies in the AMI space are not just the hardware (meter) providers. They combine them with important services and appropriate functionalities in communication infrastructure and data management. These are the key technologies for the deployment of innovative solutions. Installation of hardware does not generate a constant stream of revenue. Despite its obvious benefits, smart meter implementation reveals regional disparities. Market growth has been faster in Western and Northern Europe. The lack of regulatory drive and utility implementations has affected installation rates in Central and Eastern Europe. It is expected that the smart metering activity in the CEE region will follow the Western European knowledge wave and experience. "It is also expected that once large scale roll out activity begins in Central and Eastern Europe, the pace of implementation will be faster compared to that of Western Europe," concluded Vikash. "Regulatory approval, along with increased competition, aging infrastructure, and new technology will continue to drive investments in advanced metering and intelligent grid technologies." Nevertheless, EU member states that lack the regulatory push for deployment will experience large-scale implementation after 2015, as they have to comply with the EU's Third Energy Directive, or pay a high penalty fee.